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buy existing pharmacy practice???

  • 29-01-2011 2:50pm
    #1
    pharmacist
    Closed Accounts Posts: 49 ✭


    I am a pharmacist and I'm interested in going into business but not sure whether to buy an existing practice or set up from scratch. I would appreciate any advise that I can get on the pro's and con's of both.


Comments

  • #2
    FluffyCat
    Closed Accounts Posts: 340 ✭✭FluffyCat


    Well just from observing the local area, Id go with buying an existing practice. Any new pharmacies Ive seen have closed so unless you are thinking of a place without a pharmacy already there, Id think that would be the best.
    Also patients can become quite attached to their local pharmacy so it may be hard to get them to come to you!!
    I suppose it realy depends on what type of business person you are. If you can stay ahead and offer something extra


  • #3
    Ausone
    Registered Users, Registered Users 2 Posts: 124 ✭✭Ausone


    I would advise caution regardless of which option you take.

    A new opening is a difficult prospect months and/or years (more likely) of buliding up the trade, ie. bored and worried.

    Personally, I would look to an existing successful business, where the owner wanted to take more of a back seat or sell. Naturally any prospective business partner would want to ensure (s)he is entrusting their business to a competent person if there was any shared ownership.

    Naturally there are advantages and disadvantages to all options.

    If it was me, and I could get finance, I would buy an existing pharmacy.
    I would do my best to make sure I bought the right one though!


  • #4
    pharmacist
    Closed Accounts Posts: 49 ✭pharmacist


    Does anyone know how a pharmacy is valued these days (given the changes in recent years)
    i.e. is it valued according to the previous years turnover
    or a multiple for the adjusted net profit?


  • #5
    FluffyCat
    Closed Accounts Posts: 340 ✭✭FluffyCat


    AFAIK its still according to the last years turnover or the number of scripts. The patient base would be a good indicator on profitable. Like I said the patients tend to stick to the same pharmacy


  • #6
    Ausone
    Registered Users, Registered Users 2 Posts: 124 ✭✭Ausone


    Sorry Fluffycat, have to disagree,

    Given the changes since 2008, I doubt if anyone uses turnover to calculate the value of a pharmacy.
    I would have thought it was EBITA that was used, which is a function of the businesses ability to repay a loan.


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  • #7
    FluffyCat
    Closed Accounts Posts: 340 ✭✭FluffyCat


    Ausone wrote: »
    Sorry Fluffycat, have to disagree,

    .


    Disagree all you want but 'AFAIK' stands for As Far As I Know. Its not a statement of fact


  • #8
    pharmacist
    Closed Accounts Posts: 49 ✭pharmacist


    thanks for the replys guys. on futher research, since the cuts pharmacys are valued at 8 times sustainable net profit.
    Does anyone have any experience buying an existing practice?
    any advise would be greatly appreciated.


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